Abril Group
Transcription
Abril Group
The Abril Group São Paulo, 2006 Principles • Focus on the client • Profitability • Competitiveness Values • Excellence • Integrity • Pioneering Spirit • Respect for People Vision To be the leader in integrated multimedia, serving the most profitable and highest growth segments of the communications and educational markets in Brazil. The Abril Group Content 06 Mission Statement 07 Message from the CEO 08 Yesterday, Today and Tomorrow 12 Editora Abril 26 Television, Broadband Internet and VoIP 28 Ática and Scipione 30 Digital Media 32 Infrastructure 34 Talent 35 Fundação Victor Civita 36 Governance and Sustainability 37 Board of Directors 38 Executive Committee 40 Addresses 41 Credits The Abril Group Mission Abril is committed to spreading information, culture and entertainment, to the progress of education, improving the quality of life, Message from the CEO It is with both pleasure and pride that I improving the lives of its millions of readers present this quick overview of the Abril and viewers as well as to advancing the Group, the largest publisher in Latin America national interest. and one of its leading media companies. On behalf of my six thousand colleagues, Abril was founded in 1950 by my father, my fellow directors, my family and our Victor Civita, and over the decades its other stockholders, I hope that this booklet nearly one hundred magazines, thousands will enable you to get to know us a little of schoolbooks, television programming, better and to understand our enthusiasm Pay-TV and multimedia services have for and commitment to our company, our become known throughout Brazil for their multiple audiences and our great and quality, integrity and contributions to growing nation. developing free enterprise and the strengthening of democratic institutions. Roberto Civita Chairman and CEO May 1980 6 7 The Abril Group Yesterday, Today and Tomorrow Over half a century of innovation and pioneering in Brazilian media Focus on what the reader wants (and add a pinch of T he Abril Group’s history is filled with innovation If there were no printers or distributors with the scale discovers and is able to put on the market. challenge to overcome! If, as the sociologists and to handle output, then so much the better - another Pioneering is something everyone would like to do, anthropologists maintained, this was a country with no but only a few achieve and do it ahead of others. memory and no history, then why not flood it with highquality, professionally edited printed material? And that And Abril exemplified both by challenging, right from is exactly what he did. the start, the prevailing opinion that there was no place for the entrepreneurial spirit in the publishing industry. In addition to that, and as a central point, Victor Civita, the Company’s founder. If people were not commitment is to the reader (and not to the The word “no” simply did not figure in the vocabulary of “decide – since the beginning, that your main used to reading, then here was a wonderful opportunity Government, your friends, the advertisers or even your to introduce them to magazines, fascicles and books. encyclopedias and cookery books. In the 70’s, Abril also the advertisement and marketing section of the books, as the basis of what Abril Educação is today; it shareholders). Always tell them the truth. triggered the revolution of good and cheap educational Gazeta Esportiva newspaper on July 28, 1985. also created the Alfa project, by means of which a new and revolutionary pedagogical process aiming at Veja, our weekly new’s magazine and Exame, our business dramatically reducing primary education repetition magazine, were created in this spirit. As Abril is doing at rates at public schools was started. In addition, the the present moment, be “the eyes and the conscience of Company inaugurated the satellite TV system and the the Nation” – even if sometimes we do not really want to MMDS, and, in the threshold of digital economy and asses the truth, which can he painful or even repulsive society, created the website BOL – Brasil OnLine –, merged or to listen to our conscience. In the course of its history, afterwards into UOL. In 2000, Usina do Som (radio Abril created the segmented magazines, ranging from through the web) was launched. Capricho (Teen), Quatro Rodas (Automotive), Claudia and Manequim (Women’s Mounthlies) to Superinteressante What pushes Abril ahead of its time is always and inevitably, Boa Forma (Fitness) and Info (Information Technology). What distills Abril’s essence is its commitment to the (Science & Culture), Casa Claudia (Home & Gardening), the pursuit of excellence in all its publications and services. The Company also discovered the potential and strength country, its obsessive integrity, and the confidence that, of the subscription magazines sales system, invented through responsible journalism, it will never fail to tell the the cultural revolution of fascicles, through which it unvarnished truth to the reader,to the audience and,especially, became possible to offer common citizens excellent to the public interest and the Brazilian citizens in general. 1950 1951 1961 1965 1966 1968 1971 1971 The Group’s first business – the Editora Abril publishing company – is born. Its operations began with the publishing of Donald Duck comic books The Group’s printing plant goes on-stream The Group enters the distribution business, establishing the Distribuidora Abril distribution company “A Bíblia Mais Bela do Mundo” (The World’s Most Beautiful Bible) is the first collection of fascicles published in Brazil Launch of the Conhecer encyclopedia in fascicles, a huge editorial success Abril’s publishing company launches Veja magazine, which was to become Brazil’s most important weekly news magazine and the world’s fourth largest The Treasure Island is the first book of the collection “Clássicos da Literatura Juvenil” (Classics of the Juvenile Literature) The Abril subscription system is created ©2 ©1 1977 1982 1985 1990 1991 1996 1996 Alfa Project, geared towards children’s literacy education Abril’s distribution company, now renamed DINAP, begins offering its services to the country’s other publishing houses Establishment of Fundação Victor Civita MTV: the country’s first segmented broadcaster The Group enters the subscription TV segment by launching TVA; it was the first company to offer this service in Brazil Abril begins its internet history with BOL – Brasil OnLine, soon after merged into UOL, a partnership between Abril and Grupo Folha With the launch of Galaxy III-R, Abril enters the satellite TV age with DirecTV. 1999 2000 2001 2004 2005 2006 •TVA introduces AJato, the country’s first cable Internet Service Provider •Abril acquires a 50% stake Launch of Usina do Som website, music through the web •Abril Sem Fio (Abril Wireless) is established to offer wireless services • Corporate governance practices, with independent members of the Board of Directors and greater management professionalism •Acquisition of the 50% stake held by Vivendi Universal in Ática and Scipione •Sale of a 13.8% stake of Abril S.A. holding company to Capital International Inc., a private equity fund TVA enters into an association with Intel and Samsung for testing the first Wimax platform via digital MMDS in Brazil Partnership with Naspers, South-African communications group, which now holds 30% of Abril’s capital stock, including the stake held by Capital International, Inc. 8 what he/she needs) to know”, said Roberto Civita, Abril Group’s CEO, in a statement published in The successful history of Latin America’s largest print and electronic media company and pioneering. Innovation is something one quality versions of useful publications, such as A Bíblia, in Ática and Scipione book publishing companies, in a joint-venture with the Vivendi Universal Group 9 Print Media Editora Abril is Latin America’s largest publishing company; it publishes six of the ten best-selling titles in Brazil enjoys an approximately 58% share of Brazilian magazine publishing market 1. What we are today One of the largest and most influential communications groups in Latin America. Television The leading pay TV operator in São Paulo (Brazil’s largest city), TVA is a pioneer in the unified offering of video, data and voice (triple play), serving more than 300 thousand paid TV subscribers and 45 thousand internet broadband subscribers. Education The Ática and Scipione publishing companies lead the Brazilian educational book market, with market share of roughly 30%. Note: 1 –Includes Editora Abril, Editora Novo Continente and Fundação Victor Civita The Abril Group Editora Abril Absolute leader of the Brazilian magazine market Sources: 1 – IVC + DINAP Jan/Dec 2005; 2 – Brazil Projection based on Marplan Consolidated 2005 + IVC; 3 – DBM Abril; 4 IVC Jan/Dec 2005; 5 – IVC + DINAP Jan/Dec 2005; 6 – SVP Abril; 7 – Intermeios Project Jan/Dec 2005 Abril leads the magazine market in terms of both circulation and advertising. Circulation - volume 1 46% R Men PLAYBOY and VIP Jointly, they are 4x bigger than the main competitor Automotive QUATRO RODAS 2.3x bigger than the second largest title Women’s Monthlies CLAUDIA e NOVA Jointly, they are 3.5x bigger than the main competitor focuses on content that interests readers the most, Fashion MANEQUIM, ESTILO and ELLE Jointly, they are 4.2x bigger than the main competitor the market among each one of its audiences. Career VOCÊ S/A 12.1x bigger than the second largest title Fitness BOA FORMA 2.7x bigger than the second largest title Health SAÚDE 7.3x bigger than the second largest title features. By understanding that it is necessary to Wellness BONS FLUIDOS and VIDA SIMPLES Jointly, they are 10.6x bigger than the main competitor better, and that magazines enable this interaction, Abril Home & Gardening CASA CLAUDIA and ARQUITETURA & CONSTRUÇÃO Jointly, they are 5x bigger than the main competitor Business EXAME Information Technology INFO EXAME 8.2x bigger than the second largest title and services. Points of contact with the audience were Women’s Weeklies VIVAMAIS and ANA MARIA Jointly, they are 3.7x bigger than the main competitor DVDs, events and forums, among other means), as were Teen CAPRICHO 1.1x bigger than the second largest title Education NOVA ESCOLA 17.8x bigger than the second largest title Travel VIAGEM E TURISMO 2.6x bigger than the second largest title Soccer PLACAR 41 thousand monthly copies, no audited competitors TV TITITI and MINHA NOVELA Jointly, they are 2.1x bigger than the main competitor Girls WITCH and PRINCESAS Jointly, they are 3.1x bigger than the main competitor publishing companies worldwide. The first experience Sewing & Crafts FAÇA E VENDA 1.6x bigger than the second largest title Contigo! in Chile. The Chilean version will be Cooking CLAUDIA COZINHA 1.1x bigger than the second largest title copies. Its contents will be 60% Brazilian and 40% Science & Culture SUPERINTERESSANTE and NATIONAL GEOGRAPHIC Jointly, they are 3.3x bigger than the main competitor esponsibility, credibility and respect for its readers are central to Abril’s becoming the largest and best publisher in Brazil. With a portfolio that Editora Abril has embraced the role of expert vis-à-vis This recognition is the result of the seriousness of its segmentation work throughout the decades and is currently one of the company’s chief distinguishing interact with its audiences in order to get to know them charged some of its top professionals with becoming true experts in the several audience segments. the opportunities for advertisers and the assurance of attaining expected results. Advertising revenues 2 Others Abril 58% 42% All this work bore fruit: the publishing company posted growth of 15% in 2005, in magazine advertising, according to Intermeios data. Another highlight was the publishing company’s initiative in the field of licensing, supplying content for along these lines was the December launch of monthly, with an initial circulation of 10 thousand Sources: 1 – IVC Jan/Dec 2005; 2 – Intermeios Project Jan/Dec 2005 12 LEADERSHIP 1 2.5x bigger than the second largest title multiplied (via magazines, the internet, mobile phones, Others TITLE VEJA Thanks to this, it was possible to develop new products Abril 54% SEGMENT News And the one that knows its readers best •161 million issues 1 •23 million readers 2 •3.5 million subscriptions 3 •53% of the country’s delivered subscriptions 4 •351 titles, of which 96 are regularly published 5 •6,626 advertisers 6 •26,586 pages of paid advertising 7 Abril magazines. Leading 22 of the 26 market segments locally developed, produced by local journalists. 1.8x bigger than the second largest title Source: 1 – IVC average January/December 2005, comparison based on the average sales per edition 13 The Abril Group Editora Abril Growth through brand extension The magazine is just a starting point With 36 brands, the Abril Group produces 351 titles that the magazines and 50 events are held. Brand extension is definitely generate more than 2,000 editions released per year – including a universe worth exploring. Furthermore, with the new media, regular, special and annual publications; 52 prizes are awarded by the possibilities for brand extension become virtually boundless. Brands Brand Extension 36 Awards 315 Events 50 52 Internet 55 Websites 8 Wireless services 351 Titles 2,073 ©3 new products launched, among them: 49 DVDs 15 CDs 65 Books 18 Collections P R Ê M IO 2 ©4 1 3 4 5 Notes: 1 – Magazine published by Fundação Victor Civita; 2 – GPS Navigator for car launched in August 2006 by Guia Quatro Rodas; 3 – Daily program with cultural and leisure tips and hints broadcasted at TVA; 4 – Capricho brand licensed products; 5 – In 2005, Prêmio Victor Civita – Professor Nota 10 (Best Teacher Award), granted by Fundação Victor Civita 14 15 The Abril Group Editora Abril Veja is essential to all those whose desire and need are to be always well informed Independence, reliability and commitment to the reader V eja is the Brazil’s leading publication, in all and every aspect: circulation, advertising revenues, number of subscribers, as well as journalistic quality and competence. Veja is indispensable to readers The second largest magazine in Brazil, which is already part of São Paulo citizens, with information focused on leisure, cultural programs and services. Consumer-focused publication which brings the best options for entertainment, leisure, cultural programs and services in Rio. who want to have the news and facts of the week, from Brazil and abroad, treated with seriousness, analyzed and interpreted by respected professionals and renowned personalities. Special edition of Veja presenting the best suggestions made by experts on tourism and the art of good eating in the many regions of the country. The largest, most influential and respected magazine in Brazil, and the largest weekly news magazine outside the USA. All subscribers and newsstands in São Paulo metro region of receive Veja until 9 pm on Saturdays, which ensures the reading along the weekend. Crossing borders and reaching overseas with the best of gastronomy in Lisbon, Portugal. A guide that help readers follow the steps of digital evolution. It was launched in June 2006. The largest weekly newsmagazine outside of the U.S. National edition • Weekly circulation: 1,114,000 1 • Subscribers: 906,966 1 • Readers: 7,950,000 2 Sources: 1- IVC Jan/Dec 2005; 2- Brazil Projection based upon Consolidated Marplan 2005 + IVC 16 Time (USA) 4,034,000 Newsweek (USA) 3,135,000 U.S.News (USA) 2,018,000 Veja (Brazil) 1,114,000 Der Spiegel (Germany) 1,076,000 Focus (Germany) 753,000 Sources: FIPP – 2004/2005 Annual Report, based on 2003 consolidated data; IVC – Jan/Dec 2005 17 The Abril Group Editora Abril Business and technology magazines The 6th most admired publication in the country 2, with 93% market share in its segment, and one of the 50 largest career magazines in the world. Synonyms of seriousness, credibility and leadership C The #1 technology magazine in Brazil and the most in-depth and influential information source on computers, data processing, internet and telecom. ontents provide key information for the day- to-day activities and for the professional development of officers and business people. These magazines produce, in partnership with renowned institutions, rankings and awards that are recognized as benchmarks within the sundry segments to which they belong, thus contributing to market Monthly: 129,000 improvement and the creation of communities that share similar interests. Monthly: 173,000 Brazil’s largest and most respected business magazine. Read by 91% of the CEOs and officers of the 500 best and biggest companies in Brazil 1. The largest and most respected guide covering the corporate organizational environment in Brazil. Biweekly: 159,000 The most comprehensive publication on infrastructure in Brazil, with the largest database derived from the assessment of the 16 major business segments in the country. A magazine focused on the professionals who ultimately decide on the largest IT investments made by the largest Brazilian companies. The most traditional, in-depth and respected annual guide of the Brazilian corporate environment. It has been uninterruptedly published for the past 33 years. Magazine directed to the players in the technology products distribution market. The first and most reliable publication on corporate responsibility in Brazil. Launched in April 2006. Sources: 1 – Ipsos Marplan; 2 – Meio & Mensagem, 2005 18 Focusing its attention on the bustling market of small and medium enterprises. Note: average circulation, IVC – Jan/Dec 2005 19 The Abril Group Editora Abril It deals with fashion, health and beauty in an easy-tounderstand way, depicturing the diversity of Brazilian lifestyles. Women’s general interest magazines Publications with guaranteed presence at every moment of the readers’ lives T hese are publications focused on individuals Leading the segment in both the printed version and on the internet: Boa Forma’s website is the best fitness channel in Brazil. A benchmark in behavior, fashion and beauty for women. Jointly with Nova and Manequim, it accounts for 79% market share. who pursue self-development and well-being, cultivating inner and outer beauty and self- knowledge. The close relationship with its readers provides relevant information for each one of them. This precise dialogue with the audience is one of Abril’s greatest differentials in the marketplace. Focused on self-knowledge and readers’ relationships with themselves, their homes, families, body, mind, the others and the world. Monthly: 224,000 The major fashion magazine in the country, targeted to young women tuned in the latest trends both in Brazil and abroad. Monthly: 189,000 Monthly: 378,000 Monthly: 50,000 Leader of the segment, enjoying, jointly with Ana Maria, are 68% market share. Targeted to women who are ahead of their time. Weekly: 160,000 A genuine fashion and beauty consumption guide for the Brazilian woman. Monthly: 94,000 Monthly: 214,000 Monthly: 77,000 Produced for individuals with good taste, who treasure tranquility, simplicity and good humor in their dayto-day activities. Monthly: 37,000 20 Its focus is on the luxurious universe and the premium audience, running articles on people, places, styles, cars, consumer electronics, jewelry and events. The absolute leader in the segment, with 87% market share, and renowned as offering the best content health in Brazil. Monthly: 147,000 Miscellaneous subjects ranging from beauty and health to family relations. Weekly: 103,000 Launched in November 2005 Note: average circulation, IVC – Jan/Dec 2005 21 The Abril Group Editora Abril Culture and knowledge for adults, youth and children Leader in the segment, it has supplied students, parents, teachers and professionals with easy-to-use and reliable information and reference content for the past 31 years. Abril understands and respects its readers’ diversity of interests T Absolute leader in its segment: teenage girls. Biweekly: 112,000 he most varied interests of society fill the pages at these magazines. Abril’s persistent pursuit is The best-selling male magazine in Brazil and the largest among the 20 internationally licensed editions. to reflect these interests by means of creative, competent, and relevant contents for their target audiences. These are magazines focused on the needs, curiosities, desires, dreams and aspirations of their Monthly: 256,000 readers, tuned in to our reality. Important moments of History are presented in a simple, attractive and easy way. Monthly: 52,000 The most popular magazine directed at the youth segment and the country’s sixth largest in circulation 1. Its audience is comprised of students ranging from 15 to 21 yearsold, interested in choosing their college careers. The largest male magazine in the world. It focuses on themes of male well-being in a practical and scientific fashion. Biweekly: 354,000 Monthly magazine targeted at children aged between 6 and 11 years old, recommended by parents and teachers for its quality in educational entertainment. Launched in April 2006 Publication focused on teenagers, which brings general knowledge curiosities. Monthly: 45,000 Weekly: 88,000 It offers readers the best information on the cultural universe, in the form of a guide. It stimulates reflection, analysis and the desire of being aware of culture, as well as being inspired by it. Good-humored and irreverent, it is a benchmark to the modern man’s behavior, fashion and beauty. Monthly: 17,000 Monthly: 73,000 A fad among girls from 10 to 14 years old, the magazine brings information and entertainment. The largest and most respected publication about music in Brazil. It runs articles on all types of musical genres. Monthly: 65,000 Notes: average circulation, IVC – Jan/Dec 2005; 1 – related-party publication, Editora Novo Continente S.A. 22 23 The Abril Group Editora Abril Home, tourism, sports, cars and celebrities There is an Abril magazine for each interest and need T Source of safe and reliable information on tourism services, such as lodging, restaurants, entertainment, routes and streets. Benchmark publication on the coverage of the personal and professional lives of celebrities, TV actors and actresses and movie stars. he leading publications in their segments – reflecting the strategy of diversity and Weekly: 129,000 The leading publication in the segment, as is Arquitetura & Construção. Jointly the magazines hold a 71% market share. segmentation, as well as the high quality of their material in both design and content. Monthly: 153,000 The largest and most respected publication on the Brazilian automotive sector. It is basically targeted to the fans of soap operas, especially young and romantic women. Monthly: 150,000 A benchmark magazine in one of Brazil’s most dynamic industries: truck and bus transportation. Sole publication in this segment, directed to readers who want to learn how to build and to manage the construction of their own houses. The #1, largest and best magazine of the travel segment – a reference for tourism in the country. Weekly: 85,000 Monthly: 76,000 Monthly: 111,000 Monthly: 48,000 A magazine which is practically the Brazilian soccer’s brand and historical record; it is read and respected by soccer professionals and fans. Monthly publication dealing with gastronomy in a simple fashion and with practical recipes. Monthly: 48,000 World-renowned magazine with indisputable credibility. It is published in several countries and read in Brazil by more than 620,000 readers. Monthly: 52,000 Discloses the latest news about celebrities and upcoming events on soap operas. Weekly: 90,000 Monthly: 41,000 Note: average circulation, IVC – Jan/Dec 2005 24 25 The Abril Group Television, Broadband Internet and VoIP One of the year’s highlights was the launch Pioneering and convergence are TVA’s trademarks of DVR – Digital Video Recorder, a new concept for watching TV. TVA is the only overland pay-TV operator to offer DVR to its clients, and the only one in the country to transmit the HDTV – high definition TV content – on a commercial basis. Record results and profitability 2 005 was a year of major achievements for TVA, achievements news expanded today. It marked not only the full digitization of the MMDS network in São Paulo, expanding its potential market, but also the launch of home VoIP (Voice aggressively Over consolidating Internet the Protocol), market’s triple play (image, data and voice) offering. first The highlight in the subscription TV area was the consolidation of the digital model implemented in the São Paulo Metropolitan area as from 2004, which offers better image and sound quality, new video and audio channels, besides the new In terms of Broadband Internet, speeds ranging from 200 Kbps (kilobits per second) to 2.1 Mbps (megabits per second), besides PPB (Pay-per-band), which offers the possibility of increasing the speed of connection when necessary. All of these characteristics had a positive impact on performance: in 2005, the Ajato’s subscriber base grew 47%, to 45 thousand, whereas the rate of cancellation (churn) dropped to 15%, clearly reflecting the product’s improved quality and consequent client satisfaction. digital technology also allowed the launching 346 thousand Revenue Generating Units (RGUs), concept for watching TV andthe first step towards the offer of VOD – Video on Demand. 15 316 301 20 304 284 2002 26 Digital year, with a churn rate of the Digital cable product in São Paulo of 12% at the end of the year. 30 294 2003 MTV is the planet’s largest TV network 45 53 346 and the most valuable TV brand in the 2004 world. MTV Brasil, a Viacom,Inc. and Abril Group joint venture, is a segmented TV channel whose programming essence is music. Found in 18 million homes spread over 300 Brazilian cities, it talks to some 7 million youths every month. Managed by Abril, MTV Brasil is totally integrated into the Group, 248 providing even greater expertise in the TV segment, 2005 ranging from 200 Kbps to 2.1 Mbps, and also to the Pay-per-Band customer (PPB) the option of leasing an even broader band if necessary. Long distance wireless broadband a 7% increase when compared to the previous Internet 324 Ajato offers a sole access solution together with content provider – the Veja São Paulo Portal. Furthermore, it is the only service with an infrastructure that can guarantee 90% of the broadband hired. TVA started offering speeds growth of TVA results in 2005. Client base reached Subscriber base - RGU Revenue Generation Units (th) Analog clients in 2005. improved its offering of speeds, and started offering The multi-services offer impacted the consistent of the DVR – Digital Video Recorder, a new a reality for TVA guaranteeing 90% of the broadband hired, TVA Pay-Per-View (PPV) differentiated concept and the most flexible programming packages. The Home VoIP became besides and economies of scale through the sharing of services. • The first triple play operator in the market able to offer image, data and voice as a single package. • A pioneer in pay-TV, digital TV, broadband internet and VoIP. • Consolidated operation in the main capitals of the Southeast and the South, with more than 346 thousand revenue generating units. • Broadband internet revenues increased 33% this year and already account for 20% of TVA billings in São Paulo. CONTEN CONTENT NT FFOR OR EV EVERYONE VERYONE Th TThis his n ew technology ew new teecch hn noollooggyy allows ws aallloow higher h iggh ttrrans heerr transmission n misssioon n sspeeds. peeeed dss. p act ce, eeach IIn n pr practice, ach on oone nee ooff the the ssystem’s ystem’s aantennae ntennae eexpands xpands iits ts ssphere pheree ooff aaction ctioon to to as as uch as much m as 50 50 kilometers. kilom ometeerrss. ABC DIGITAL INCLUSION regardless of location. ACCCESS/M ACCESS/MOBILITY MOBILITY Y Partners Produces texts, photos, videos and audio material for the several audiences with which it maintains a relationship. Transmits content to users via radio waves. Provide technological support of a single standard, available to any manufacturer. In nm movement, ovvemen nt, anywhere an nywhere and d anyytim anytime. me. ©5 TVA is the first operator in Latin America to begin tests of WiMAX, the evolved version of Wi-Fi technology. It is a platform that offers wireless, highspeed, mobile data communication, with a maximum capacity of 3 Mbps per user and total mobility of up to 120 km/h. It can be used in fixed, portable or mobile modes. WiMAX is TVA’s chief bet as far as the future is concerned and this has led it in 2005 to enter associations with Samsung Electronics and Intel. 27 The Abril Group Ática and Scipione Abril Educação is the Brazilian textbook leader One of the leaders in the private market for the 5th to 8th grades in Mathematics. A market of more than R$ 1 billion in sales per year Market share Government and Private A História para Todos was recognized bril Educação, which comprises the Ática and as the third best schoolbook Scipione publishing companies, sold 37 million collection from Jabuti Award 2005. books in 2005 – 28 million to the government market and 9 million to the private market. Jointly, the publishing companies closed 2005 with 4,316 titles A&S 30% Others 70% in their catalog, including schoolbooks, children’s and teenagers’ literature, educational works, dictionaries and atlases. The Brazilian textbook publishing market is strongly Abril Educação is the leader in sales to both the government and the private market in the country. influenced by government purchases, to serve primary education. Every year, some 40 million students from the elementary and secondary public school network benefit from the government’s acquisition of books. Quality is the distinguishing feature • 40 years • 1,091 authors • 2,536 title catalog - 461 schoolbooks - 2,075 supplementary • 22 years • 661 authors • 1,780 title catalog - 417 schoolbooks - 1,363 supplementary Since the establishment of book evaluation programs In the last government program for the 1st to 4th grades, each child studying in a public school received for the governmental market, Abril Educação’s approval ratios have been rising, surpassing the market average. This has resulted in a competitive gain when it is time for teachers to make their choice. The titles’ list is previously approved by the FNDE – National Fund for Educational Development. six free books, two of which were published by Ática and Scipione. Alegria de Saber and Pensar e Viver were Abril Educação best-selling books in the last 1st to 4th grades government program. 28 In 2005, six Ática books were included in the “Highly Recommended Books” list prepared by the National Foundation for Children’s and Teenagers’ Books (Fundação Nacional do Livro Infanto-Juvenil - FNLIJ). Almanaque Ruth Rocha, stands out in particular, for having won the FNLIJ Malba Tahan “best informative book” award. 29 The Abril Group Digital Media Quality content when and where people want it, the way they want it •Interactivity with its readers allows Abril to get to know its different audiences better and better, which is good for readers, web surfers and a big bonus for advertisers. Wireless revenues more than tripled in 2005 S upplying quality content and making it 9 million single visitors per month. Abril sites also available when, how and where its audience have some 4.7 million registered users, who receive wants it is the main challenge faced by regulary information, services and offers from Abril Abril Digital. This Abril area directs and coordinates •The Abril Group sites generated more than 1 billion page views 1 in 2005. •Through the Abril Portal visitors can subscribe to magazines and access data on all the publications and on the Group, as well as go shopping in the Abril Store. by e-mail. efforts and investments in the Internet and wireless platforms, including mobile phones, PDAs and Abril’s magazine sites have different levels of access, other mobile devices. The core objective is to exploit with some free areas and others that are reserved interactivity, mobility and the new communications for subscribers and newsstand buyers. Sites with platforms and languages that appear, thereby exclusive Internet content have also been developed servicing readers, web-browsers and clients better and can be acquired through online subscription, as is and better. the case for Playboy Cyberclub, Planeta Playboy, Exame The www.abril.com.br Portal is Brazil’s eighth most highly regarded, according to Meio & Mensagem newspaper research. main facts and news from Brazil and from the world. Through the Internet, it is already possible to access All of these activities increased Abril’s digital media and other brands. In 2005, they drew an average of revenues in 2005 brings quality information of the Melhores e Maiores and Guia Brasil Quatro Rodas. more than 55 websites of Abril magazine titles Veja On-Line, Scipione Interativa (Scipione Interactive) offers a special pedagogical advisory area and online workshops, plus links for research and lesson preparation. Playboy in the cell phone For mobile telephones, Abril researched, developed and produced services and products using the broadest range of data technologies adopted by the country’s mobile services carriers. The main highlight of the year was Playboy, which made available text, image and video content, thereby expanding the consumer’s experience of the brand. SMS texts WAP site Images Videos Games Boa Forma’s website The 2.9 million Info On-line unique visitors 2 have access to the latest and most updated news of is the channel for those who care for their body and mind. the digital world. Source: 1 and 2 – Wusage, January/December 2005 30 31 The Abril Group Infrastructure Quality from beginning to end Great competitive advantage through shared services flexibility throughout the entire distribution process. The magazines’ logistics and distribution system is structured to meet the demand of a country as large as Brazil. The 23 million readers, subscribers and newsstands customers directly benefit from the integration of all the processes. Abril’s printing plant has a strong competitive differential for medium and large editions, using the rotogravure process. In addition, it maintains a partnership with Quebecor printing press, in the city of Recife, for the printing of the north and northeast circulation of Veja magazine, ensuring Up-to-date infrastructure and rationalized processes, indispensable for Group growth ©6 Gráfica Abril São Paulo (SP) Gráfica Quebecor Recife (PE) • 1,100 employees • 70,000 metric tons of paper consumed a year • 350 million copies printed, including magazines, supplements and special editions • 8 million books per year • 77 monthly magazines • Average use of capacity: 88% in 2005 North ©9 9 distributors 960 points of sale (POS) D improving the production, administration and financial processes of the Group. During this period, all the systems that provide support for business and administration have been reviewed by world-class partners. •The Gráfica Abril printing plant is Latin America’s largest and the only one capable of printing a weekly magazine such as Veja within the required timeframe. •52,500m2 area. Northeast upgraded, enabling the printing plant to produce Relationship Management – CRM process. Internally magazine production was a wider range of products and to profitably service outside customers. The administrative, financial, human resources and provisioning processes of all of the Group’s companies were centralized and standardized through the implementation of the ERP Oracle system. 32 71 distributors 19.739 POS South 24 distributors 5.736 POS SP e RJ own distributors 42 distributors work exclusively for the subscribers’ delivery system 95 distributors work on a joint operation to deliver subscriptions and single copies 36 distributors deliver magazines to the points of sale, 2 of which are Dinap’s own distributors ©10 With all its systems consolidated and its infrastructure and Dinap - Distribuidora Nacional de Publicações Dinap serves all its points of sale with 2 owned distributors as well as 129 regional distributors. Southeast •Filmless and computer-to-plate printing system. The infrastructure of its printing complex was modernized, 10 distributors 1,976 POS Primary transport Primary transport, which leaves from the printing plant and goes to the regional distributors, relies on systems that connect road, air and river carriers. 15 distributors 3.842 POS Center-West major investments in integrating and Centro de Distribuição Raposo Tavares (SP) ©8 Distribution Some 170 regional distributors guarantee personalized delivey to 3.5 million subscribers and to the 32,253 retails points of sale nationwide. uring the last four years, Abril has made ©7 upgraded, Abril is now ready to start its Customer called Projeto Raiz (Root Project), Abril’s CRM takes into Door-to-door delivery (95%) Mail delivery (5%) Abril’s Client Services Rosana de Oliveira, elected the best operator in the Subscription Sales System. Abril’s customer service call center received over 5 million calls in 2005. account the consolidation of the subscriber base of 32,253 points of sale •22,308 newsstands, magazines and book stores •8,175 alternative points of sale (convenience stores, lottery branchs, etc.) • 1,770 large retailer (supermarkets) magazines, online content, paid TV and the Internet into a single channel, making it possible for Abril to obtain and use customer household views. As a result, the focus is changing from client servicing to client relationship, ©11 generating greater business opportunities. 33 Talent Competence, creativity and commitment Essential characteristics of the people who make up Abril T he people who work for the Abril Group comprise its essence. It is an environment that calls for creativity and talent across all careers, congregating professionals with high potential and performance. The 5,475 employees, of which 61% are men and 39% women, identify strongly with the company and its values. The Group’s main instruments for attracting and training talent, both in the editorial, graphics and administrative areas, are the intern and trainee programs, as well as the Abril Journalism Course, Brazil’s most prestigious editorial training program for recent graduates. Resources tools in the day-to-day conduct of its business. HR processes have been standardized and employee management and access is conducted electronically through its Intranet. and the cultural background of its employees, Abril maintains a well-structured training and development program. In 2005, it focused especially on technical training, emphasizing the development and understanding of the languages that the new media require. Distribution by educational level The Group’s management of remuneration is based on well proven merit performance evaluation tools. College graduate All employees receive variable pay. For the more senior 46% Completed Elementary Schooling High School Doctorate Master’s degree 1% 46% Post-graduate studies positions, this is achieved through a bonus, whereas the other employees have a profit sharing program. Additionally, every two years the company conducts its “Climate Research”, a program to gauge employee satisfaction. Conducted by expert outside consultants, 7% Distribution by time in the Company More than 10 years 24% 27% The Abril Group employs the most up-to-date Human To further strengthen its focus on humanistic themes Attraction and Retention 6 to 10 years Recognition and motivation A&S 30% Outros 70% it is regarded as a key element for fine-tuning the Group’s policies, benefits and internal communication. Diversity and experience Since 2001, Abril has maintained a Special Talents Up to 1 year 11% Program that has become a benchmark reference in the corporate world for the hiring of people with handicaps. By the end of 2005, there were 94 employees in the company who are part of the program, 80% of 1 to 5 years 38% 34 whom hold operating functions in the printing plant and in the Distribution and Logistics area. Governance and Sustainability Professionalism, transparency and predictability The basis for the future of the Abril Group R emodeling of the Abril Group’s corporate In August of 2005, the Audit Committee, the Human organizational restructuring that set up the were put in place. The Audit Committee, pursuant to the increasing the level of professionalism of the Company’s Valores Mobiliários - CVM) and the US Sarbanes-Oxley Act, implemented without loss of focus on editorial integrity responsible for validating the Group’s financial statements governance was begun in 2001, when the Resources Committee and the Finance Committee Abril S.A. holding company was conducted. This involved rules of the Brazilian Securities Commission (Comissão de upper management echelons. These changes were includes three independent outside members. The Board is and independence – the cornerstone of Abril’s credibility. and for monitoring the internal audit work. Management Sustainability Directors and an Executive Committee. The Board of a better world for coming generations: this is Abril’s are independent; it is responsible for defining the make this come true, by respecting the trio of financial – are then put into practice by the Executive Committee. country’s development and to enhancing citizenship. This and specific themes for each meeting. Additionally, the production and dissemination of information, culture, long-term strategic outlook. that strengthen its connections with the community, by The Abril Group is currently managed by a Board of To act today while keeping an eye on the future, ensuring Directors comprises ten members, three of whom vision. The Group is committed to doing its share to organization’s long-term strategic policies, which social – environmental elements. Abril is committed to the The Board meets monthly, with a pre-defined agenda expresses itself not only through its corporate activities – it holds an annual meeting for discussion of the Group’s education and entertainment – but also through activities taking part in projects to which it can add its experience. Organizational Structure Finance Board of Directors Audit Committee CEO Finance Committee Human Resource Committee Human Resource Audit Legal Editora Abril 36 70% Civita Family 30% Viacom COO Corporate Affairs TVA 70% Civita Family 30% Naspers Limited Ática and Scipione MTV The Abril Group Board of Directors Roberto Civita Giancarlo Civita Claudio Haddad 70 years old, Mr. Civita is the Chairman of the Board of Directors of Abril Group, Chief Executive Officer and Editor. He is also President of the Victor Civita Foundation. Mr. Civita is a graduate in journalism and economy from the Wharton School of Pennsylvania University and received a post-graduate degree in sociology from Columbia University. 42 years old, he has since 2003 served as Vice-Chairman of the Board of Directors and assumed the role of Chief Operating Officer in 2006. He joined Abril in 1982 and has held positions such as TVA Programming Director, Managing Director of MTV, Vice-President of Entertainment Division and Vice-President of Youth Unit. He is a graduate of ESPM with a postgraduate studies degree from Harvard Business School. 59 years old,has been an independent member of Abril Group’s Board of Directors since 2004. He is Chairman of the Board of Directors of Veris Educacional S.A., which controls Ibmecs of São Paulo, Rio de Janeiro and Belo Horizonte and IBTA. He holds a degree in mechanical and industrial engineering from the Instituto Militar de Engenharia do Rio de Janeiro, with Master’s and PhD degrees in economy from Chicago University. Jim Volkwyn Fabio Barbosa Hein Brand José Augusto Moreira 48 years old, became a member of Abril’s Board of Directors in May 2006. He began his affiliation with the Naspers group in 1991. Currently, he is CEO of MIH’s global operations, holding executive responsibility for Naspers’ pay TV operations in 44 countries on the African continent and also in the Mediterranean. He has a Bachelor in Commerce from the University of Cape Town, and is also a Chartered Accountant. 51 years old, has been an independent member of Abril Group’s Board of Directors since 2004. He is President of Banco ABN Amro Real, and also Vice-President of FEBRABAN. He is a graduate in business administration from FGV and holds an MBA from IMD (Switzerland). 40 years old, became a member of Abril’s Board of Directors in May 2006. He is the Managing Director of Media24 and is also responsible for the worldwide operations of MIH Print Media in Africa, China, Russia and India. He serves on the boards of a number of companies in the Naspers Group, which he joined in 1998. He is a graduate in accounting, law and taxation from the universities of Stellenbosch and South Africa, and is also a Chartered Accountant (South Africa). 62 years old, has been Abril’s executive over the past 37 years. He held various positions in the Finance/ Administration areas until becoming a member of Abril Group’s Board of Directors, in October 2002. He is a graduate in economy of the Faculdade de Economia e Administração São Luiz and participated in the PMD – Program for Management Development at Harvard Business School. Marcel Telles Thomaz Souto Corrêa Victor Civita 56 years old, has been an independent member of Abril Group’s Board of Directors since 2004. He is also member of the Board of InBev’s where he chairs the Convergence and Human Resources Committees. He is a graduate in economy by UFRJ and participated in the Management Program for Owners/Presidents at Harvard Business School. 67 years old, has been an editorial consultant, member of Abril Group’s Board of Directors and Vice-President of Abril’s Editorial Board since 2003. He worked during 40 years in the Group, in which he participated in the development, launching and reformulation of various magazines. 41 years old, became a member of Abril Group’s Board of Directors and Managing Director of Abril Digital in 2006. He joined Abril in 1990 as Programming and Production Director of MTV, having been responsible for the implementation of the broadcasting company in Brazil. He was also Programming and Production Director at TVA, Director of Abril Produções and VicePresident of the Youth Unit at Editora Abril. He is a graduate in Political Science from Columbia University, at the U.S. Board of Directors • Claudio Haddad • Fabio Barbosa • Giancarlo Civita • Guilherme Lins • José Augusto Moreira • Marcel Telles • Maurizio Mauro • Roberto Civita • Thomaz Souto Corrêa • William Bannister-Parker 37 The Abril Group Executive Committee Roberto Civita Eliane Lustosa ©15 Mauro Calliari Sidnei Basile 38 70 years old, Mr. Civita is the Chairman of the Board of Directors of Abril Group, Chief Executive Officer and Editor. He is also President of the Victor Civita Foundation. Mr. Civita is a graduate in journalism and economy from the Wharton School of Pennsylvania University and received a post-graduate degree in sociology from Columbia University. 43 years old, she is Finance and Control VP since 2005. She was formerly Finance and Administration Director of Ponto Frio (Globex Utilidades S.A.). Previously, she was Investments Director of Petros – Petrobras Foundation, Director of Economic Protection and Defense of the Secretary for Economic Law of the Ministry of Justice and Technical Coordinator of the Ministry of Economy, Treasury and Planning. She is a graduate in economy from PUC-RJ, with a Master’s degree in economy and PhD in finance. 44 years old, has been Managing Director of VEJA/EXAME Group since 2004. He has been working at Abril over the 12 past years, and has directed various business units such as male magazines, travel magazines, children and youth publications. He also launched and managed for 3 years the Abril. com, area and was responsible for the Company’s Internet and wireless strategy. He is a graduate in business administration from FGV and received an MBA from SDA Bocconi, in Milan. 59 years old, has been in the Abril Group since 2000. He assumed the position of Editorial and Institutional Relations Director-Secretary in 2004. Previously he was Managing Director of the Exame Group for 4 years. A journalist for over 38 years, he has degrees in law and sociology by USP. He is author of the book Elements of Economic Journalism, published in 2002. André Mantovani Deborah Wright Marcio Ogliara Jairo Leal 42 years old, has been Managing Director of MTV Brasil since 1998. He has also held positions as Co-General Director and Administrative and Finance Director of MTV. He is a graduate in economy from UNICAMP and has a Master’s degree in Communication and Semiotics from PUC of São Paulo. Giancarlo Civita 42 years old, he has since 2003 served as Vice-Chairman of the Board of Directors and assumed the role of Chief Operating Officer in 2006. He joined Abril in 1982 and has held positions such as TVA Programming Director,Managing Director of MTV, Vice-President of Entertainment Division and Vice-President of Youth Unit. He is a graduate of ESPM with a post-graduate studies degree from Harvard Business School. Leila Loria 52 years old, is Managing Director of Electronic Distribution and has been responsible for Pay TV operations (TVA), Broadband Internet (Ajato) and Voice (TVA Voice) since 1999. She held management positions in the retail sector and participated in the implementation of Wal-Mart in Brazil. Currently, she is president of NeoTV and Neotec. She is a graduate in business administration from FGV with Master’s degree from COPPEAD-UFRJ. João Arinos 45 years old, has been Managing Director of Abril Educação since 2001. He has been president of Abrelivros (Brazilian Association of Publishers) since 2004. He is a graduate in mechanical engineering from Unicamp, with specialization at Harvard Business School and an MBA from FGV-SP. Victor Civita 41 years old, became a member of Abril Group’s Board of Directors and Managing Director of Abril Digital in 2006. He joined Abril in 1990 as Programming and Production Director of MTV, having been responsible for the implementation of the broadcasting company in Brazil. He was also Programming and Production Director at TVA, Director of Abril Produções and Vice-President of the Youth Unit at Editora Abril. He is a graduate in Political Science from Columbia University, at the U.S. 49 years old, Commercial and Marketing VP since 2002. She has 20 years of experience in consumer products, working at companies, such as Philip Morris, Unilever, Parmalat Brasil and Pão de Açúcar Group. She is a graduate in Business Administration from FGV. 46 years old, has been working at Abril Group since 1992. He was appointed Human Resources and Organizational Development VP in early 2006. He has worked at Bunge Group and Banco Noroeste. He is a graduate in business administration from FEA-USP, with Personnel Strategic Management courses at Insead – France and an MBA from FGV. 49 years old, has been Managing Director of Special Interest Business Group since 2004. He has been working at Abril since 1973 and has held various positions, such as Planning and Control Manager, Finance Director and Circulation Director. He is a graduate in business administration and accounting from Faculdades Metropolitanas Unidas FMU,with specialization in finance administration from USP. Arnaldo Tibyriçá 48 years old, has been Legal Director since 2003. Previously, he worked at C&A Group, Banco Itaú and BCP Telecomunicações. He is a law graduate in from PUC-SP. Cleide Castellan 51 years old, is Executive Adviser of the Board of Directors of Abril S.A. She has been working at the Group for the past 27 years, and held a position at the Corporate Relations Executive Board. She is a graduate in public relations from Faculdade de Comunicação de Santos and in sociology and politics from Escola de Sociologia e Política de São Paulo. Douglas Duran 53 years old, he is the Shared Services Vice-President since 2006. He joined Grupo Abril in 1978 and has already acted as Editora Abril’s Chief Treasurer, TVA’s CFO, Planning and Business Director of Abril Entretenimento Managing Director of Dinap and International Relations Director. He is a business administrator, specialized in finances from USP, having also attended the Program for Management Development from Harvard Business School. Claudia Costin 50 years old, is Vice-Chairwoman of Victor Civita Foundation. For two years, she was Manager of Public Policies and Fight Against Poverty for the Latin America at the World Bank. She joined the State Department of Culture in January 2003, where she worked for two years. She is a graduate in public administration from FGV, where also received a Master’s and PhD. Aby McMillan 36 years old, is Abril’s Executive Director of Strategic Planning, International Relations & New Business. He joined the Group in 2006, after two years ahead of Magexpress/Distimag, as the Commercial Director. Before, he also accumulated experiences at Booz Allen Hamilton, as Senior Director of Communications, Media & Technology, and at IBM, as VicePresident of IBM Global Services Europe. He earned a Bachelor of Science Degree Honours First Class Computing Science & Physics at Oxford, U.K., and a MBA at Harvard Business School, in addition to IBM’s Executive Management at Insead. Executive Committee 2005 • André Mantovani • Arnaldo Tibyriçá • Cleide Castellan • Deborah Wright • Douglas de Oliveira • Eliane Lustosa • Jairo Leal • João Arinos • José Wilson Paschoal • Mauro Calliari • Maurizio Mauro • Leila Loria • Sidnei Basile • Tales Alvarenga • Valter Pasquini 39 Addresses Abril’s Corporate Management Av. das Nações Unidas, 7221 – Pinheiros CEP: 05425-902 – São Paulo, SP – Brazil Tel.: 55-11 3037-2000 Subscriptions Client Services (SAC) For subscription renewal, change of address or means of payment, among others: Toll free Brazil: 0800-7042112 São Paulo metropolitan area: 55-11 5087-2112 Fax: 55-11 5087-2100 www.abrilsac.com.br abrilsac@abril.com.br Subscription Sales (SVA) Toll free Brazil: 0800-7012828 São Paulo metropolitan area: 55-11 3347-2121 Fax: 55-11 3347-2115 www.assineabril.com.br abril.assinaturas@abril.com.br Renova Fácil (Easy Renewal) Toll free Brazil: 0800-7042035 São Paulo metropolitan area: 55-11 5087-2145 www.renovabril.com.br Datalistas Client Services Tel.: 55-11 3037-3555 Dedoc (Abril’s Documentation Department) Client Services Tel.: 55-11 3037-2125 Conteúdo Expresso (Express Content) Sale of texts and images pertaining to Abril’s file. Rua Dr. Renato Paes de Barros, 717 4º andar – Itaim-Bibi CEP: 04530-001 – São Paulo, SP – Brazil Tel.: 55-11 3089 8855 Fax. 55-11 3089 8899 www.conteudoexpresso.com.br atendimento@conteudoexpresso. com.br 40 Dinap – Management Distribuidora Nacional de Publicações (Brazilian Distributor of Publications) Dinap – Operations, Logistics and Distribution Av. Dr. Kenkite Shimomoto,1678 Jardim Teresa CEP: 06045-390 – Osasco, SP – Brazil Tel.: 55-11 3789-3000 TVA Client Services Tel.: 55-11 3038-5498 TVA Rio Rua General Bruce, 551 – S. Cristóvão CEP: 20921-030 – Rio de Janeiro, RJ – Brazil Client Services Tels.: 55-21 3233-5060 and 55-21 2223-6399 Ajato Client Services Tels.: 55-11 3038-7001 and 55-21 3231-5733 Subscription Sales Tels.: 55-11 3038-5498 and 55-11 2223-6399 Editoras Ática, Scipione and Gráfica Av. Otaviano Alves de Lima, 4400 Freguesia do Ó CEP: 02909-900 – São Paulo, SP – Brazil Tel.: 55-11 3990-2100 MTV Av. Professor Alfonso Bovero, 52 – Sumaré CEP: 01254-000 – São Paulo, SP – Brazil Tel.: 55-11 3871-7100 Fax: 55-11 3871-7002 Audience Services Tel.: 55-11 3874-3505 Regional Offices Belo Horizonte Rua Fernandes Tourinho, 147 salas 302 e 303 – Savassi CEP: 30112-000 – Belo Horizonte, MG – Brazil Tel.: 55-31 3282-0630 Fax: 55-31 3282-0632 Brasília Edifício Brasília Trade Center, 14°andar, sala 1414 SCN Quadra 01, Bloco C CEP: 70711-902 – Brasília, DF – Brazil Tel.: 55-61 3315-7575 Fax: 55-61 3315-7518 Curitiba Av. Cândido de Abreu, 776 6°andar, salas 601 e 602 Centro Cívico CEP: 80530-000 – Curitiba, PR – Brazil Tel. : 55-41 3250-8000 Fax.: 55-41 3252-7110 Porto Alegre Av. Carlos Gomes, 1155 sala 702 – Petrópolis CEP: 90480-004 – Porto Alegre, RS – Brazil Tel.: 55-51 3327-2850 Fax: 55-51 3327-2855 Rio de Janeiro Praia do Botafogo, 501 1º andar, bloco B – Botafogo CEP: 22250-040 – Rio de Janeiro, RJ – Brazil Tel.: 55-21 2546-8282 Fax: 55-21 2546-8253 Ribeirão Preto Av. Nove de Julho, 1463 Jardim América CEP: 14015-170 – Ribeirão Preto, SP – Brazil Tel.: 55-16 3964-5516 Fax: 55-16 3632-0660 The Abril Group Credits Chairman and CEO: Roberto Civita Chief Operating Officer: Giancarlo Civita Vice-Presidents: Deborah Wright, Douglas Duran, Eliane Lustosa, Marcio Ogliara The Abril Group Editor: Sidnei Basile – Editorial and Institutional Relations Director General coordination: Meire Fidelis – Public Relations Manager Graphic project and art direction: Carlos Grassetti – Corporate Art Director and Biocomm Propaganda Ltda. Images: ©1 – Hans Gunter Flieg / ©2 – Memória Abril / ©3 e ©4 – Douglas Cantu / ©5 – Infográfico: Galileo Giglio (Estúdio Mol) / ©6 – Éden Carvalho / ©7 – Divulgação Dinap / ©8 – João Ramid / ©9 – Divulgação / ©10 – Olíbio Santana / ©11 – Ricardo Garcia Dias / ©12 – João Ávila / ©13 – Ricardo Benichio / ©14 – Gustavo Lourenção / ©15 – Sendi Morais Printing: Ricargraf Gráfica e Editora Ltda. Edition: 2,000 copies Copies of this publication may be requested by calling: 55-11 3037-2039 Institutional Relations Office Av. das Nações Unidas, 7221 – 22º andar 05425-902 – São Paulo, SP – Brazil The Management Reports and Financial Statements, in Portuguese and English, are available at the Institutional Relations Office or at the website www.abril.com.br/empresa Production coordination: Mena Pires – Public Relations Desktop publishing: Ricardo Garcia Dias Consultancy and production: Fabiane Jampolsky – MZ Corporate Communications Consolidation of financial information: Marcelo Vaz Bonini – Corporate Planning and Control Director Manoel Bizarria Guilherme Neto – Corporate Controllership Manager Photos: Pedro Rubens Acknowledgment to those who contributed to data and information gathering for this book: Aldo Teixeira, Ana Mantovani, Andreia Caires, Andrés Bruzzone, Auro Iasi, Bia Mendes, Cleide Castellan, Daniel Oliveira, David Saad, Denise Ornellas, Diva Velasco, Douglas Cantu, Eric Galvão, Fabio Gallo, Hamilton dos Santos, Leila Cocito, Lia Santiago, Malvina Galatovic, Mariana Szauter, Marilia França, Patricia Frangiosi, Peter J. Rosenwald, Pietro Pizzolante, Roberta Campanini, Rosana de Oliveira, Sérgio Vasconcelos, Wander Mendes e Yen Wen Shen. FORWARD-LOOKING STATEMENTS This annual report contains forward looking statements regarding Abril Group’s expectations, anticipated synergies, growth plans, projected results and future strategies. Although these forward looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These uncertainties include, but are not limited to, our ability to realize projected synergies in the amount and on the timetable projected, as well as economic, competitive, governmental and technological risks that may affect Abril Group’s operations. Readers should not rely exclusively in the information contained herein. The Company undertakes no responsibility to update the projections contained herein, in light of new information or their future developments. São Paulo, 2006 41 (Abril is a part of your life) PARA QUEM QUER VIVER MAIS E MELHOR www.abril.com.br Av. das Nações Unidas, 7221 – Pinheiros 05425-902 – São Paulo – SP Tel.: 55 11 3037-2000